As part of the “National Program for Border Revival” under Resolution No. 68 of the State Great Khural of Mongolia (2023) and the Government’s 2024–2028 Action Program, the construction of the cross-border railway from Gashuunsukhait to Gantsmod officially began today, June 15, 2025.

To implement this project, the two countries’ contractors, “Tavantolgoi Railway” LLC and the People’s Republic of China’s “China Railway Construction Bridge Engineering Bureau Group” Co., Ltd., signed a construction contract on June 9, 2025.

Today, drilling for the first bridge foundation pile of the cross-border railway project was conducted, officially marking the commencement of on-site construction.

On the Mongolian side, executives led by B. Dügerjav, Acting CEO of “Tavantolgoi Railway” LLC, participated, while on the Chinese side, participants included Wan Shangjun, Director of “Gantsmod Railway Investment” of China Energy, Li Guoqiang, Deputy Secretary-General of China Railway Construction Bridge Engineering Bureau Group Co., Ltd., as well as other engineers and technical staff.

This project is a strategically important initiative implemented under Mongolia–China cooperation.

The Gashuunsukhait–Gantsmod railway is planned to be 32.6 km long, first-class, with dual tracks of 1,520 mm standard gauge and 1,435 mm narrow gauge, capable of transporting 40 million tons of cargo annually. Of this, 19.5 km is the main railway, and the remaining section includes single and double bridge structures 8–31 meters high, a border control complex, technological buildings, and comprehensive infrastructure solutions.

Construction is scheduled for 24 (22) months and includes the cross-border railway bridge, standard and narrow-gauge stations, entry point organization, and border control infrastructure. The project is financed by “Erdenes Tavantolgoi” JSC in accordance with the State Great Khural’s resolution, with a planned budget of 902 billion MNT, which may be adjusted depending on economic conditions.

The cross-border railway project not only contributes to infrastructure development but also aims to increase Mongolia’s coal exports from the current 83 million tons to 165 million tons. Specifically, 30 million tons of coal per year can be exported through the Gashuunsukhait–Gantsmod line, and at $100 per ton, the project could generate $3 billion in export revenue. Railway transport alone is expected to generate $250–300 million annually, significantly contributing to GDP growth by $1,000 per capita.

Additionally, with the Gashuunsukhait–Gantsmod railway, conditions will be created to connect other border crossings (Shiveekhuren, Khangi, Bichigt) by rail.

The project contractor was selected through an international open tender conducted by the Public Procurement Agency, and the construction is being carried out by China Railway Construction Bridge Engineering Bureau Group Co., Ltd., a subsidiary of the world-leading China Railway Construction Corporation.

This construction is the second railway project between Mongolia and China since the Zamyn Üüd–Erlian railway established under the 1955 agreement. Mongolia is now connecting the Gashuunsukhait–Gantsmod border railway for the first time in 70 years.

Negotiations for this railway project have been ongoing in Mongolia since 2004 and have been in progress since 2008; these negotiations have now turned into concrete action.